How a Regular Investment Flow reduces the impact of market fall risk?
The following illustration shows an investment scenario since 1999 where the NAV is taken reflecting the Average Quarterly BSE Sensex Figures with a regular investment every quarter till Jul-Sep 2008.
Note : The Red Coloured Blocks showing the period of Quarters when the Market had a fall vis-a-vis the Green Coloured Blocks showing the Fall of NAV Values and the Number of Units Bought at those levels (OPPORTUNITY).
|
Year |
Quarter |
Average Quarterly BSE Sensex |
NAV Reflecting Sensex |
Regular Investment |
Units Bought |
Units Accumulated |
Total Value |
|
1999 |
Jan - Mar |
3418 |
10.00 |
100,000 |
10,000.00 |
10,000.00 |
|
|
Apr - Jun |
3799 |
11.11 |
100,000 |
8,996.96 |
18,996.96 |
111,149 |
|
|
Jul - Sep |
4638 |
13.57 |
100,000 |
7,369.40 |
26,366.36 |
257,782 |
|
|
Oct - Dec |
4742 |
13.87 |
100,000 |
7,207.79 |
33,574.15 |
365,804 |
|
|
2000 |
Jan - Mar |
5441 |
15.92 |
100,000 |
6,282.37 |
39,856.53 |
534,418 |
|
Apr - Jun |
4611 |
13.49 |
100,000 |
7,412.14 |
47,268.67 |
537,719 |
|
|
Jul - Sep |
4465 |
13.06 |
100,000 |
7,655.38 |
54,924.06 |
617,457 |
|
|
Oct - Dec |
3943 |
11.54 |
100,000 |
8,668.22 |
63,592.28 |
633,626 |
|
|
2001 |
Jan - Mar |
4096 |
11.98 |
100,000 |
8,345.46 |
71,937.74 |
761,998 |
|
Apr - Jun |
3511 |
10.27 |
100,000 |
9,734.22 |
81,671.96 |
739,019 |
|
|
Jul - Sep |
3190 |
9.33 |
100,000 |
10,714.38 |
92,386.34 |
762,265 |
|
|
Oct - Dec |
3288 |
9.62 |
100,000 |
10,396.59 |
102,782.92 |
888,622 |
|
|
2002 |
Jan - Mar |
3488 |
10.20 |
100,000 |
9,800.43 |
112,583.35 |
1,048,759 |
|
Apr - Jun |
3332 |
9.75 |
100,000 |
10,258.88 |
122,842.23 |
1,097,424 |
|
|
Jul - Sep |
3118 |
9.12 |
100,000 |
10,962.48 |
133,804.71 |
1,120,570 |
|
|
Oct - Dec |
3108 |
9.09 |
100,000 |
10,997.48 |
144,802.19 |
1,216,685 |
|
|
2003 |
Jan - Mar |
3488 |
10.20 |
100,000 |
9,800.43 |
154,602.62 |
1,477,508 |
|
Apr - Jun |
3285 |
9.61 |
100,000 |
10,404.17 |
165,006.80 |
1,485,968 |
|
|
Jul - Sep |
3986 |
11.66 |
100,000 |
8,574.82 |
173,581.62 |
1,924,318 |
|
|
Oct - Dec |
5039 |
14.74 |
100,000 |
6,782.48 |
180,364.10 |
2,559,263 |
|
|
2004 |
Jan - Mar |
5798 |
16.96 |
100,000 |
5,895.10 |
186,259.20 |
3,059,561 |
|
Apr - Jun |
5279 |
15.45 |
100,000 |
6,474.38 |
192,733.58 |
2,876,865 |
|
|
Jul - Sep |
5180 |
15.16 |
100,000 |
6,598.20 |
199,331.78 |
2,921,001 |
|
|
Oct - Dec |
6019 |
17.61 |
100,000 |
5,678.84 |
205,010.62 |
3,510,080 |
|
|
2005 |
Jan - Mar |
6527 |
19.10 |
100,000 |
5,236.56 |
210,247.18 |
3,914,988 |
|
Apr - Jun |
6596 |
19.30 |
100,000 |
5,181.89 |
215,429.07 |
4,057,348 |
|
|
Jul - Sep |
7778 |
22.76 |
100,000 |
4,394.17 |
219,823.24 |
4,902,610 |
|
|
Oct - Dec |
8645 |
25.29 |
100,000 |
3,953.72 |
223,776.96 |
5,559,908 |
|
|
2006 |
Jan - Mar |
10162 |
29.73 |
100,000 |
3,363.37 |
227,140.32 |
6,653,363 |
|
Apr - Jun |
11092 |
32.45 |
100,000 |
3,081.48 |
230,221.80 |
7,371,145 |
|
|
Jul - Sep |
11299 |
33.06 |
100,000 |
3,024.92 |
233,246.72 |
7,610,850 |
|
|
Oct - Dec |
13233 |
38.72 |
100,000 |
2,582.85 |
235,829.57 |
9,030,580 |
|
|
2007 |
Jan - Mar |
13661 |
39.97 |
100,000 |
2,501.88 |
238,331.45 |
9,426,090 |
|
Apr - Jun |
13990 |
40.93 |
100,000 |
2,443.21 |
240,774.67 |
9,754,831 |
|
|
Jul - Sep |
15360 |
44.94 |
100,000 |
2,225.29 |
242,999.96 |
10,819,905 |
|
|
Oct - Dec |
19196 |
56.16 |
100,000 |
1,780.57 |
244,780.54 |
13,647,275 |
|
|
2008 |
Jan - Mar |
17631 |
51.58 |
100,000 |
1,938.65 |
246,719.19 |
12,626,345 |
|
Apr - Jun |
16078 |
47.04 |
100,000 |
2,125.85 |
248,845.04 |
11,605,656 |
|
|
Jul - Sep |
14127 |
41.33 |
100,000 |
2,419.43 |
251,264.47 |
10,285,271 |
|
|
TOTAL |
3,900,000 |
|
10,285,271 |
||||
|
Absolute Return |
164% |
|
Compounded Annualised Return |
11% |
Disclaimer: The values of average quarterly BSE Sensex are being taken from the respected Bombay Stock Exchange Website. The company does neither have any control nor any other source of getting the figures. This above illustration meant only as a tool to educate any investor. The above illustration doesnot carry the information prevailing to fiscal laws / tax rules as these laws and rules are being stated and are subject to change by the Government of India. The investor is advised to consult his / her professional tax advisor. The above illustration doesnot carry any guarantee or promising returns of any investment in equity and equity related instruments. The Company is not responsible for any copying or misuse of the above illustration. Investment in Equity or Equity Related Instrument(s) are subject to market risk.
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